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International franchising and licensing have become one of the premier vehicles for international business expansion. Franchising now exists in more than 160 countries and is successfully utilized in more than 70 different business sectors. By one count, franchise sales are averaging over $18.3 billion per year.

 

International franchising and licensing enables companies to efficiently leverage their most valuable asset, their brand and associated intellectual property (encompassing trademarks, patents, know-how, and business and marketing systems) in return for royalties and/or products sales. Franchising and licensing reduces the requirement to invest company resources in expansion by instead recruiting international franchise/license partners who a) provide the capital establish local operations, b) are more motivated than employees to succeed, and c) have the important knowledge of their local markets. The partners, in turn, need to operate within strict brand, business and operational guidelines. The partners are then rewarded by profits and the franchisor, importantly, receives royalties and/or product sales in return.

 

While expanding internationally sounds very appealing to entrepreneurs, there are some disadvantages that should be considered before taking this step. When going overseas, a franchisee is essentially walking into a new culture; customers may have different wants and needs; resources required may not be available or may differ; and understanding the rules and regulations governing franchises can be overwhelming.

 

JB Franchising provides key support and advice to assist clients in their global expansion.  A summary of the franchise laws of some of the jurisdictions worldwide is set out in this section.

While our main focus is the Middle East and North Africa, JB Franchising is able to assist and guide clients outside the MENA as they embark on their global expansion path.  Our firm understanding of franchising laws and requirements, and our network of franchise consultants and lawyers worldwide enable us to provide the support and confidence our clients need as they expand.

INTERNATIONAL FRANCHISING:

International Franchising

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